The Nasdaq-100 is getting hammered again this morning, with two groups accounting for most of the pain.
As this RadarScreen® shows, nine of the 10 worst-performing companies in the index today are either semiconductor-related names or Chinese Internet stocks. Biotech Alexion Pharmaceuticals (ALXN) is the only exception.
Chip stocks have broken through a bearish descending triangle as years of rapid growth slows. Last night brought another dose of bad news from Texas Instruments (TXN), whose earnings, revenue and outlook all lagged estimates. At least one analyst, Susquehanna, also downgraded the broader group because of potentially weaker demand.
There will be another chip catalyst tonight when high-flier Advanced Micro Devices (AMD) issues its numbers.
Chinese tech stocks like Ctrip.com (CTPR), Netease (NTES) and JD.com (JD) have also dropped as selling continues in Shanghai. Click here for more on the challenges facing the giant Asian country.
Want to learn more about TradeStation’s powerful tools like RadarScreen®? Click here for access to our next MasterClass in Florida, November 12-16.
The weakness in the two groups comes as key indexes try to hold potentially key support. Also don’t forget Nasdaq-100 companies still have plenty of events: Microsoft (MSFT) earnings tonight, Amazon.com (AMZN) and Alphabet (GOOGL) tomorrow, and even an Apple (AAPL) product launch next Tuesday.
In conclusion, bears continue to hammer the weakest parts of the Nasdaq. The big question now facing investors is whether buyers will step in to defend the bigger index.